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High-speed rail and employment disparity: A sectoral perspective

Author

Listed:
  • Zheng, Longfei
  • Wu, Shuping
  • Zhang, Anming
  • Zhou, Zhengyi

Abstract

By reducing intercity transport costs, transportation infrastructure can reshape the spatial distribution of urban sectoral employment and affect regional disparity. This paper develops a theoretical model to illustrate the effects of high-speed rail (HSR) on employment disparity between core and peripheral cities, highlighting differences between the manufacturing and service sectors. The model’s predictions are supported by city-pair-level evidence. We empirically show that HSR connections significantly widen employment gaps between core and peripheral cities in the service sector, while slightly narrowing the gap in the manufacturing sector. Moreover, the effects on the service sector mainly stem from employment growth, whereas those on the manufacturing sector result from a redistribution of existing employment. The net effect on labor welfare depends on the relative strength of different forces.

Suggested Citation

  • Zheng, Longfei & Wu, Shuping & Zhang, Anming & Zhou, Zhengyi, 2026. "High-speed rail and employment disparity: A sectoral perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 209(C).
  • Handle: RePEc:eee:transa:v:209:y:2026:i:c:s0965856426001552
    DOI: 10.1016/j.tra.2026.105014
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    Keywords

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    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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